New Guide Explains EU Funding Management Modes
A new explainer details the three ways European Union funds are managed: direct, shared, and indirect. Shared management, where the Commission and member states jointly manage funds, is the most common and includes key resources for regional development and cohesion policy. Understanding these distinctions is critical for Dutch municipalities and researchers seeking to access EU funds for projects in housing, climate adaptation, and circular construction.
- For the 2021-2027 period, the EU's long-term budget, combined with the NextGenerationEU recovery instrument, totals over €2.0 trillion. Approximately 70% of the EU budget is disbursed through shared management programs. - The Netherlands' Recovery and Resilience Plan is supported by €5.4 billion in EU grants, with €538 million specifically allocated to reforms and investments in the housing sector and making the built environment more sustainable. This aligns with the national goal of building 900,000 new homes by 2030, with a focus on affordability. - Horizon Europe is the EU's primary funding program for research and innovation, with a budget of €95.5 billion. It includes specific "missions" to address societal challenges, such as adapting to climate change and creating greener cities. - The European Urban Initiative (EUI) has a budget of €450 million to support cities in testing innovative solutions to urban challenges. A recent project funded under this initiative in Tilburg focuses on giving a second life to used electric vehicle batteries. - The LIFE program specifically targets environmental and climate action, with a portion of its funding dedicated to innovative projects in the circular economy. An example of a Dutch project that previously received funding through a related urban initiative is the "Super Circular Estate" in Kerkrade, which focused on 100% material and social circularity in social housing. - The Association of Netherlands Municipalities (VNG) provides Dutch municipalities with expertise and support for accessing EU funds. This can be crucial, as a 2022 report noted that over two-thirds of Dutch recipients of EU grants needed to hire external advisers to navigate the application and reporting process. - In December 2025, the European Commission announced a plan to tackle the housing crisis, which includes relaxing state aid rules to make it easier for national governments like the Netherlands to financially support affordable and social housing projects.
